(EDITOR’S NOTE: According to sources familiar with the details of this sale, the final price for the asset was 406 million, or $400 per square foot. LaSalle Investment Management would not comment on the sales price when contacted for this sale.)
WALNUT CREEK, CA – Hines, the international real estate firm, announced today that along with a subsidiary of real estate funds managed by Oaktree Capital Management, L.P. (“Oaktree”), it has acquired Ygnacio Center, a transit-oriented, three-building premier office project totaling 514,918 square feet in Walnut Creek, California.
The complex features a landscaped park, above average parking, an onsite café/bakery, and generous setbacks that provide sweeping mountain views.
Situated in the premier downtown Walnut Creek submarket, Ygnacio Center occupies an entire city block with immediate access to highways and is directly adjacent to the Walnut Creek BART station. It is also less than a 10-minute walk to downtown Walnut Creek’s retail core and has a walk score of 88.
Hines and Oaktree will pursue a significant capital upgrade program to reposition the complex, including building a brand-new 8,200-square-foot amenity center with conference facilities, co-working space, bike lockers, showers, outdoor collaborative space, and additional tenant improvements. This will allow Hines and Oaktree to offer tenants significant value for their rent and a meaningfully improved built environment in which to work.
Hines Senior Managing Director George Clever said, “We are pleased to add Ygnacio Center to our growing portfolio. Given the quality of the location and the solid market fundamentals, we believe this is a strategic acquisition for our portfolio.”
Oaktree Managing Director Ambrose Fisher commented, “We are pleased to acquire this office asset where we have the ability to provide a compelling value proposition to our tenants.”
Ygnacio Center is leased to a roster of diverse industries including financials services, legal, healthcare, real estate, and technology.
Oaktree is a leader among global investment managers specializing in alternative investments, with $122 billion in assets under management as of June 30, 2018. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 900 employees and offices in 18 cities worldwide. For additional information, please visit Oaktree’s website at www.oaktreecapital.com.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 207 cities in 24 countries. Hines has approximately $116.4 billion of assets under management, including $64 billion for which Hines provides fiduciary investment management services, and $52.4 billion for which Hines provides third-party property-level services. The firm has 109 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,319 properties, totaling over 431 million square feet. The firm’s current property and asset management portfolio includes 527 properties, representing over 224 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information.